Abstract
M.Com. (Business Management)
Its seems that Information and Communication Technology (ICT) Outsourcing is now a major business for Information Technology Outsourcing Providers (ITOPs) and all their focus is on client retention and new business acquisition. Variables like Employee Satisfaction, Customer Loyalty, and Financial Performance and how they relate to Customer Satisfaction seem to have received ample research attention. The way the client perceives and rates the service, can be influenced by a couple of factors and Service Level Rating (SLR) is one of the factors under study.
The main aim of the research was to investigate the relationship between Service Level Rating and Customer Satisfaction Rating (CSR) in Information and Communication Technology Outsourcing. Other variables like competency of the engineer, size of company and type of industry were also used to see if this relationship between SLR and CSR depends on these variables.
A quantitative research approach is followed. Secondary data is used in the study as it is considered the most suitable given the variables under investigation. The main variables are Service Level Rating (SLR) and Customer Satisfaction Rating (CSR). Pre-testing was done to ensure reliability which solidifies the foundation for the analysis and results.
The research showed that there is a strong negative relationship between Service Level Rating (SLR) and Customer Satisfaction Rating (CSR). However the results showed that
client rates do not depend on the level of competency of the engineer providing the service. During SLA negotiations, managers need to be able to balance the effect of Customer Satisfaction and at the same time save the client on cost of delivery at a high Service Level after careful considerations of the factors that influence Customer Satisfaction. Although it is important to maintain customer satisfaction ratings, managers must understand the implications of the human elements of customer satisfaction.
The results may not be generalised but are limited to the organisation under study. This research can open further areas of research in future across the ICT sector. More avenues need to be researched on the relationship between the two variables. In future the research could further investigate if the relationship between SLR and CSR is affected by level of the client within the organisation. The research could be extended across the ICT industries in South Africa, the developing and developed economies.